ASX-listed Bannerman Resources has announced intentions to update the definitive feasibility study (DFS) for Etango uranium project.
The company said the development comes following the conclusion of the heap leach demonstration plant programme.
According to the company the updated DFS will target capital and operating cost reductions, with the demonstration plant providing evidence for improved recovery and reagent assumptions.
“Our two-year commitment to the Etango demonstration plant programme has been a remarkable success. Not only have we consolidated Etango’s position as one of the most advanced large uranium projects globally, but we have also generated substantial opportunities to enhance and further de-risk the project,” said Bannerman Chief Executive Officer Brandon Munro.
Based on average yearly production of 7.2-million pounds of uranium oxide over an initial mine life of 15.7 years, the Etango project is expected to have a net present value of $419-million and a post-tax internal rate of return of 15%.
The previous DFS estimated that the project would cost about $870-million to develop.
Etango Uranium Project is one of the world’s largest undeveloped uranium projects and also one of the few uranium projects in the world with a completed Definitive Feasibility Study (DFS) and environmental permitting.
The data from DFS indicates that the mine’s production is expected to be 7-9 million pounds U3O8 per year for the first five years and 6-8 million pounds U3O8 per year thereafter.
With a minimum mine life of 16 years and significant expansion potential through the conversion of existing Inferred Resource as well as the deposit being open at depth and along strike, Etango is considered a low technical and environmental risk project.
The Etango licence area (EPL 3345) is approximately 500 square kilometres.